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8
while again the improvement and welfare of the port would seem to depend very considerably on the ability of the Company to give efficiency and facilities of up-to-date nature, in all departments.
8. The Federated Malay States has recently invested very considerably in the shares of this Company.
9. The circumstances referred to in the two last preceding paragraphs seem to the directors reasonable ground for their asking that the Federated Malay States may favourably consider the suggestion that these States should, at a specially low rate of interest, lend this Company, secured by debenture mortgage over its property, an amount of money such as will enable the Company-
(a) To proceed with the various works recommended in Mr. J. Rumney
Nicholson's report of 9th January, 1904; and
(b) Pay off existing debenture mortgages as these fall due.
10. The directors would suggest a loan of ($10,000,000) say, ten million dollars -to be availed of as the needs of the Company require; and in view of the fact that the works contemplated will, in largest degree, be for the benefit and advantage of the port, the settlement, and the colony generally, they would most respectfully suggest that the rate of interest should be the specially low one of (3 per cent.), say, three per cent. per annum.
Trusting that this inquiry and suggestion of the Board of Directors of the Tanjong Pagar Dock Company, Limited, will receive most favourable consideration by the Government of the Federated Malay States,
W. Hood Treacher, Esq., C.M.G.,
9
estimated balance at the close of the current year will be $14,690,724, if the liberal provision in the Estimates, 1904, for public works and railways is fully utilised. The actual balance will probably be in excess of that estimate.
4. I do not know what action is proceeding in regard to the proposal that these states should finance the construction of a railway through the territory of Johore.
An approximate estimate of the sum which will be required to construct that fine is $12,000,000, and the money would be advanced as work progressed. The rate of interest is to be 3 per cent. The survey of this line has yet to be made.
5. I notice that Mr. Anderson states (paragraph 6) that the Colonial Govern- ment has arranged to have the appointment of two directors on the Company's Singapore Board-of this I have no official knowledge.
6. In view of the commercial and political importance of the port of Singapore, the possibility of foreign competition in the neighbourhood, of the need for increasing the facilities at the Tanjong Pagar Dock Company's property to meet modern requirements and competition, and of the paramount advantage of Government being strongly represented in the control, I venture to deem the matter one of Imperial importance, and to advise that the request of the Company meet with favourable consideration on conditions of the nature sketched by Mr. Anderson in paragraphs 23-27 of his memorandum.
7. I consider too that the Federated Malay States are financially in a position
to make the loan, but looking to the advantages which will result to the Colony, I think the Colonial Government should take up, say, one-half of the amount, though at the same time I trust nothing will occur to hinder the carrying out of the proposed harbour improvements of Messrs. Coode, Son, and Matthews.
8. In an unlikely emergency I anticipate that the Colony and Federated Malay States would have no difficulty in raising money at 3 per cent.
I have, &c.,
JOHN ANDERSON, Chairman of the Tanjong Pagar Dock
Company, Limited.
His Excellency
I have, &c.,
+
W. H. TREACHER,
Resident-General,
Federated Malay States.
Resident-General,
Federated Malay States,
Kuala Lumpor.
The Acting High Commissioner,
Federated Malay States.
PUBLIC RECORD OFFICE
Reference :-
C.O. 882
8 PUBLIC RECORD OFFICE, LONDON
ALLY WITHOUT PERMISSION OF THE BE REPRODUCED PHOTOGRAPHIC. COPYRIGHT PHOTOGRAPH-NOT TO
• 15th February, 1904.
1st March, 1901.
SIR,
(Secret.)
Enclosure B in No. 5.
Resident-General's Office, Selangor,
Malay Peninsula, March 3, 1904.
Federated Malay States' loan to Tanjong Pagar Dock Company.
IN continuation of my letter, confidential, No. 15, of 2nd March current, on the subject of the request of the directors of the Tanjong Pagar Dock Company, Limited, for a loan of ten million dollars, to be spread over a period of at least ten years, at 3 per cent. per annum, I have the honour to submit, for Your Excellency's consideration, copy of a "Strictly Confidential "Memorandum by Mr. John Anderson, who is at present the Chairman of the Company at Singapore, and of one by the Federal Secretary, Mr. A. R. Venning.
2. It should be borne in mind that the Company which applies for financial assistance is the proprietor of the principal docks and wharves at Singapore, which will eventually be to all intents and purposes (for I consider the connection between the Colony and the States to be of a very intimate nature) the southern terminus of the Federated Malay States Railway, and of the docks at Prai, which is now the northern terminus of the line.
3. The Financial Commissioner informs me that the credit balance of the Federated Malay States on the 31st December last was $16,000,000, while the
• Not forwarded.
(Secret.)
Enclosure C in No. 5.
MEMORANDUM On proposal that Federated Malay States Government should lend
$10,000,000 to Tanjong Pagar Dock Company, Limited.
The proposals for improving the dook accommodation appear to be good.
2. The expenditure proposed is as follows:--
(a) Improvement of main wharf, design No. 4, cylinders
(b) Eastern extension, cylinders
(c) Large Graving Dock
(d) Lagoon scheme-exclusive of extension on north
$4,203,100
$1,995,053 $2,000,000 $3,880,000
$12,078,153
for bunkering wharf
$1,932,000 $1,243,000
$15,253,153
3. This is exclusive of mechanical appliances, elevators, con-
veyors and bins Do.
do.
do.
4. If the Singapore docks are to be put in a position to compete with the most modern docks or to deal satisfactorily with the requirements of the port, the above expenditure will have to be met; and as the dooks will form the terminus of the
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B